The Predetermined Overhead Rate for Zane Company Is $5 Comprised

question 175

Multiple Choice

The predetermined overhead rate for Zane Company is $5 comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours to arrive at the predetermined overhead rate of $5. Actual overhead for June was $8900 variable and $5400 fixed and 1500 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is

• A) $1800 F.
• B) $700 F.
• C) $700 U.
• D) $1800 U.

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Definitions:

Flexible Fiber-Optic

Refers to a type of technology that uses thin, flexible fibers of glass or other transparent solids to transmit light, allowing for the viewing or delivery of light in tight or curved spaces.

Pupils

The black circular openings in the center of the iris of the eye, which regulate the amount of light that enters the eye.

Accommodation

The process of the lens changing shape to permit close vision.

Reaction To Light

The response of the pupil in the eye when exposed to light, typically narrowing (constriction) to reduce light intake and protect the retina.